China Specialist, Auto and Industrial Specialist

Victoria Li

Thematic (Sector/Industry)

We estimate China's heavy machinery sector sales turn weaker in 2019E because<ul>
<li>Incremental demand on main machines, excavators, loaders, heavy duty trucks, etc, would remain weak given the leading indicator - yoy growth of China's planned investment on newly started projects in Infrastructure sector - remain negative at -28.1% in 8M2018. Recent positive policy tone set on infrastructure is not strong enough to change the weakness.</li>
<li>Current up-cycle, which is driven by the replacement demand from machines sold since 2008, is going to end next year. Considering annual sales in 2018 for excavators might go above 200,000 units, higher than that of 2011.  It is very likely that China's excavator sales volume 2019E would be flattish, without a boost from incremental demand.</li>
</ul>Long-term buyers shall avoid related stocks, although their valuation look attractive after recent market pullback. Zoomlion (1157.HK) has the highest valuation among peers, which could be a short target.

We estimate China's heavy machinery sector sales turn weaker in 2019E because
Incremental demand on main machines, excavators, loaders, heavy duty trucks, etc, would remain weak given the leading indicator - yoy growth of China's planned investment on newly started projects in Infrastructure sector - remain negative at -28.1% in 8M2018. Recent positive policy tone set on infrastructure is not strong enough to change the weakness.
Current up-cycle, which is driven by the replacement demand from machines sold since 2008, is going to end next year. Considering annual sales in 2018 for excavators might go above 200,000 units, higher than that of 2011.  It is very likely that China's excavator sales volume 2019E would be flattish, without a boost from incremental demand.
Long-term buyers shall avoid related stocks, although their valuation look attractive after recent market pullback. Zoomlion (1157.HK) has the highest valuation among peers, which could be a short target.

China Heavy Machinery-Back to Doldrums in 2019

Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

DZT Research

DZT Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Quantitative Analysis

<ul>
<li>We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of February 13th.</li>
<li>The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.</li>
<li>We highlight flows for Tencent, Alibaba, Meituan, China Life, CNOOC.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of February 13th.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for Tencent, Alibaba, Meituan, China Life, CNOOC.


HK Connect Flows Weekly (Feb 13th): Tencent, Alibaba, Meituan, China Life, CNOOC

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

<ul>
<li>Aequitas Research's weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.</li>
<li>On the IPO front, a number of ~US$1bn deals could launch this week.</li>
<li>On the placement front, flow continues to slowdown going into year end earnings season.</li>
</ul>


Aequitas Research's weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
On the IPO front, a number of ~US$1bn deals could launch this week.
On the placement front, flow continues to slowdown going into year end earnings season.


Aequitas ECM Weekly (26 January 2026)- Busy Ming, Montage, Eastroc, Muyuan, Longcheer, Sinotruk,

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

<ul><li>Sinotruk’s 1H25 net profit grew 4% YoY to RMB3.4bn, which is largely in-line with our below-consensus estimate.</li><li>Sinotruk proposed an interim dividend of HK$0.74/shr, equivalent to 55% of dividend payout.</li><li>We maintain our view that the lack of export growth will weaken the overall sales growth this year (despite decent sales from China). </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Sinotruk’s 1H25 net profit grew 4% YoY to RMB3.4bn, which is largely in-line with our below-consensus estimate.Sinotruk proposed an interim dividend of HK$0.74/shr, equivalent to 55% of dividend payout.We maintain our view that the lack of export growth will weaken the overall sales growth this year (despite decent sales from China). Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Sinotruk (Hong Kong) (3808 HK) - 1H25 Profit In-Line with Our Below-Consensus Forecast...

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

<ul>
<li>Hong Kong continues its secular bull market and has now reached its first significant resistance in the 24k to 25k.  Growth factor investing is leading in long-only investing.</li>
<li>Mainland buyers continue buying Hong Kong stocks at a historic rate with buying focused in the tech sector and specifically in AI-related companies.</li>
<li>
<a href="https://www.smartkarma.com/entities/zoomlion-heavy-industry-h" target="_blank" data-smartkarma-citation="entities:7817:1" rel="noopener">Zoomlion Heavy Industry H (1157 HK)</a> has broken its double-top formation and is at a new high.  <a href="https://www.smartkarma.com/entities/vtech-holdings-ltd" target="_blank" data-smartkarma-citation="entities:18812:1" rel="noopener">Vtech Holdings (303 HK)</a> broke out to a new high with improving momentum.
</li>
</ul>


Hong Kong continues its secular bull market and has now reached its first significant resistance in the 24k to 25k.  Growth factor investing is leading in long-only investing.
Mainland buyers continue buying Hong Kong stocks at a historic rate with buying focused in the tech sector and specifically in AI-related companies.

Zoomlion Heavy Industry H (1157 HK) has broken its double-top formation and is at a new high.  Vtech Holdings (303 HK) broke out to a new high with improving momentum.



Technically Speaking, Breakouts and Breakdowns: HONG KONG (March 6)

China

Sinotruk Hong Kong manufactures and sells a wide range of commercial vehicles, including heavy-duty, medium-duty, and light-duty trucks, buses, and specialized vehicles. The company also produces key components like engines, axles, and gearboxes, and offers financial services. It was incorporated on January 31, 2007, and is headquartered in Jinan, China.

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Sinotruk Hong Kong (3808 HK)

China Heavy Machinery-Back to Doldrums in 2019

We estimate China's heavy machinery sector sales turn weaker in 2019E because Incremental demand on main machines, excavators, loaders, heavy duty...

Victoria Li

HK Connect Flows Weekly (Feb 13th): Tencent, Alibaba, Meituan, China Life, CNOOC

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for Tencent, Alibaba, Meituan, China Life, CNOOC.

Ke Yan, CFA, FRM

Aequitas ECM Weekly (26 January 2026)- Busy Ming, Montage, Eastroc, Muyuan, Longcheer, Sinotruk,

Aequitas Research's weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.

Sumeet Singh